Transcripts For BLOOMBERG Market Makers 20150414

We are also going to be talking to the winner of the masters. Before we get to that, how about news. We will take you to the bulletin. The top stories of the morning. It is a good day for jp morgan shareholders. Profits beat analysts estimates climbing to 12 . It is the first time that has happened. Since 2010. The of jp morgans Investment Bank said high volatility help to drive the quarter. Shares in the company are up in early trading. Good news for wells fargo. They Beat Estimates with lower rates. That helped buyers refinance debt. They are the most viable u. S. Bank. Investors do not seem impressed, shares are falling. Retail sales fell short. It was the first gain in four months. The biggest advance in over a year. Overall the figures show americans are being cautious with their wallets. Even with savings from lower gas prices. It may take a bigger boost and wage growth before they loosened their Purse Strings and hit the shopping malls. The Worlds Largest maker of Health Care Products has First Quarter profits that Beat Estimates. Up 3 at Johnson Johnson. Johnson johnson is looking to revitalize its pharmaceutical lineup. Its popular hepatitis c and blood thinner medication has new competition and the strong dollar is hurting sales internationally. Another agreement between amazon and a book publisher. Harpercollins. They agree to a multiyear deal covering the sale of a print and ebook business. Sticking points have been the price of digital books and shared revenue. Amazon has asked for discount saying it would boost sales. Publishers and some authors have balked at the proposal. A recordsetting performance in china with the latest installment of the fast and the furious movie franchise. Furious 7 broke chinas one Day Box Office record taking in more than 63 million. The previous record holder transformers 4 had 36 million. I should move to china i should not move to china anytime soon because the movies they like are not my jam. Stephanie you are not a fast and furious kind of gal . How big of a byte is the strong dollar taking out of the u. S. Economy . A new model quantifies Dollar Strength and the inevitable rise in investment rates in stocks. Our economist is with us to tell us what it means in the months and years ahead. What is your view on the pace of the u. S. Economy . The First Quarter was disappointing. 1 after retail sales this morning. We think this weakness will be temporary. We are looking for a strong rebound in the Second Quarter. Some of the weakness is inconsistent with other signals. Pointing painting a less bad picture than the gdp. There was probably some weather impact. We are looking for 3. 5 in the Second Quarter and beyond that 2. 5 to 3 over the next couple of years is where we are. Clearly that is above the trend. The trend in the lower numeral twos. In the lower 2s. We do not see the urgency on why the fed needs to get off of their anytime soon. Stephanie jan if you take out the weather, what will make the list . Jan two things. One, the gdp numbers understate the growth phase in the First Quarter. If you look at the evidence which is just as valuable as the hard on the numbers, the Consumer Confidence numbers, the regional Federal Reserve service, they have softened somewhat. A are consistent with better than 1 . Hugh have the weather on top of that. That is worth quite a bit. Erik let me get this straight. On the one hand, the feds should be on hold because the data is not there to support a rate increase, on the other hand you are looking at the data we are seeing. Based on things that are more say in tangible in nature, like confidence you feel the economy is doing better than the eta suggests . Jan the growth phase will be fine. Theyre still slack in the economy. Inflation is low. Wages are growing 2 . Maybe a touch above. Still, well below the normal growth rate that you would expect in a fully employed labor market of 3 or 4 . When i put that together, even in a decent growth environment i think there is good case to wait. Erik how long . These things are hard to predict. How long until we see the wage growth that has been so long in coming . Jan i would expect some improvement over the remainder of the year. I do fake, the leading indicators are pointing to that. Not just the antidotal end of stories about mcdonalds and walmart lifting wages, but wage growth in the corporate sector. There is the question, what do you expect. What do you see in the data . The fact that we have seen week wage Growth Numbers week wage Growth Numbers is something you need to take into account. Stephanie are you taking a closer look at your numbers and predictions when you hear investors are saying this looks like a schalke like deja vu all over again in 2004 . Jan 2004 was a point when the economy was starting to do a little better. A lot of the excesses started more in late 2005 2000 six, 2000 seven. If this is about financial instability, i do not think were at a point where financial instability looks likely. As far as the economy is concerned, i do think that good growth is likely, just like in 2004 and 2005, you have good growth. Erik im intrigued by the work you have done on financial conditions. Interest rates, the dollar, oil prices. Lets walk through that. Everyone wants to know when the fed will hike. Eventually it will. We should eventually see an increase in longterm bond yields. What will that do to the economy . Jan an increase in longterm bond yields by itself, out of thin air, will mean weaker growth. Youll get a shock to the bond market that will impact mortgage rates. There are other channels of transmission. It will mean less growth. Usually, it does not come out of fan air. It is the flipside of Something Else in the economy. If that Something Else is better growth, stronger demand from abroad, stronger demand domestically, you have to take that into account. In general, higher bond yields lower equity prices, stronger currency. Those things mean less growth. That is why we look at it, and our financial conditions. Erik the dollar, in your work, you said a 10 appreciation cuts gdp growth by half a percentage point. The dollar has increased by 10 already. Does that suggest that gdp growth in 2015, all being equal, would be half a percentage point faster . Jan we have seen more than 10 since last summer. This year has not been as high. Over that time, you have seen more than a 10 broad wages appreciation. That should shave a half point to three quarters of a point off of growth. You have a large drop in oil prices. From a growth perspective, our model would say it is roughly offsetting. At the moment, when you look at the data, the negative effects seem to be showing up more quickly than the positive effects. We are waiting for better numbers on the consumer. We have not seen those. I expect an improvement to a large extent, driven by real income boost. From our perspective, theres definitely some areas suffering from the strong dollar, but some areas should be benefiting. Stephanie lets talk oil prices. Do you think they will stay in the 50 range . Jan in the near term, i think there is a good chance we will see lower numbers. Our commodity strategists think that. The market is oversupplied. The supplydemand fundamentals point to lower prices. Longer term, we dont think 40 oil is where we will end up. We would look for somewhat higher prices. Erik quickly, why are low oil prices, the oil shark has not done more to goose the economy . Jan the retail Sales Numbers dont show a big boost but we have seen somewhat of a pickup in consumer spending. If you look at the university of Michigan Confidence numbers they are showing a large boost. I would not give up that expectation yet. It is too early to say we are not getting an oil boost. Erik the chief economist at goldman sachs. Jan hatzus. Stephanie Ceo Tim Armstrong is counting on a new platform to boost advertising sales. We have an exclusive interview. Erik olivia blush i will be with us. Erik it is time to bring you up to speed on the top stories of the morning. The deal that could create biggest maker of Wireless Networking equipment. Note yeah is an advance talks to acquire alcatel. The deal could value alcatel at more than 13 billion. There is no certainty an agreement can be reached. Both companies are saying that. In part because the French Company will be looking for job guarantees. Shares are soaring. Note year has dropped 4 . Bill ackman talks about Student Loans. Ackman says there is no way the students will be able to pay back the money. The government says 9 of outstanding balances, 100 billion dollars, are in default. Drawing parallels to the housing collapse. That could be overdone. A notebook used by alan trying has sold for a Million Dollars at auction. It is the only manuscript known to exist. He was effected in last years movie, the imitation game. Coming up in 10 minutes the imf has the forecast. We will speak with the chief economist of ims. When president s, business moguls, want to hold a party. Theres one guy to call. We will sit down with the masters champion. Stephanie a milliondollar party. Please. More than that. Moving on. Aol dialing up into the advertising world. A new platform with ad placement on how well they do with audiences in real time. It is called one by and well. Cory johnson is with the ceo of aol, Tim Armstrong. I am nervous for you. If Tim Armstrong nose in real time what you are interested in, that could lead to dark advertisements. Cory it is disturbing. Thank you for joining us. Kind of like a marketer and advertiser becomes almost like a wall street trader having realtime feedback and platforms to exercise art. Is that a way to think of this . The advertiser becomes in touch with real time . Cory tim it is nice to be on the show and nice to see you in silicon valley. This is the biggest pivot point in media. From the way that traditional media was done and internet media. The automation and targeting at advertising at a deeper level across mobile, internet, ott. One by aol is the forefront product for the next generation of internet advertising systems. As you described, it is the most powerful time for marketplaces in the world. A well is stepping up today with the most powerful futuristic marketplace for advertising. We spent five years of work and we are excited. We know the power of the product. Cory you have done so many acquisitions of companies. Is this the stitching together of technologies into a single platform . Tim we started as a team making larger bets before other people. One in video, one in advertising, one in global content brands. When you think of those three areas, we have put together aols historic platforms together with the most exciting acquisitions in our space. Aol is a top three player in video, most distributors content on facebook for news at the huffington post, the newsroom behind me for social, and today for the programmatic platforms. No one has a more advanced system that touches att more than aol. Ott more than aol. The stitching together of the strategy is important. We have a 2030 year strategy in front of us. Cory i think of what clever marketers do. I had the ceo of carls jr. On before the super bowl. They went to the markets that had the most impact. They recognize they would not be mcdonalds, so they went with a particular ad reaching a particular young male customer. They were particular on how they would contact customers on the web and social media. Going after that demographic. It seems like we have shifted from demographics to results focused. How might that work in a real case example . Tim the easiest way to think about it, is into is intuit taking advantage of a singular trend. Media was built in bulk and sent out in bulk. Now it is built on a singular basis. And sent on a singular basis. As an advertiser like intuit we are in taxis in super bowl right now. Multi devices and multi formats talking individually to consumers. And you think about the future of connecting it will be on a singular basis. That is why social networking is important. Our platform is the first platform to take advantage of the singular nature of the singular content going to singular consumers. When you look at the recent tv statistics, the fact that all human beings in this country are Walking Around with machines in their pockets that are as powerful as a cable box all of our systems are built to deliver highquality content and advertising in a singular way to everyones pocket. That will be a very significant shift for the entire media and Internet Business with the next two or three decades. Cory theres a technological problem. Smartphones dont accept cookies. How can you track the efficacy of an ad if you cant get the feedback . Tim the internet has been cookiebased. Mobile is about device targeting. We have 100 million devices in the United States we understand and can crosslink between a mobile device and desktop and ott. That creates a powerful union if you think about the way consumers consume media. Either on broadcast, newspaper, or digital. Today with one by aol, we can cross format and target in general. It makes what cookie targeting was into a more powerful way because it is cross devices. When you think about future advertising, a lot of people think technology will the flight at prices. I will make two bets. It will get better and more creative for consumers and you will have prices go up. You have a 600 million industry with a lot of ads we dont know how they work. Imagine how long they will spend when you know how each individual consumer works. It will be a very powerful change. Cory thank you very much. We appreciate your time. Erik coming up we will hear from the imf chief economist talking about the impact of a stronger dollar, a weaker euro the outlook for the global economy. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie ruhle. Erik welcome back. Youre watching Market Makers on bloomberg television. Im Erik Schatzker. Stephanie im stephanie ruhle. Jpmorgan posted Quarterly Earnings that heat estimates. The First Quarter revenue from stocks and bonds increased for the First Time Since 2010. Higher volatility roosted volume. Last year trading revenues fell as the markets were unusually calm. Sales rose 910 survey percent in march after a decline in february blaming bad weather in the northeast. Even though the mark increase fell short, it was the biggest gain in over year. The imf says the stronger dollar is helping japan and the euro area, but taking steam out of the u. S. Recovery. The imf kept its projections from Global Growth unchanged of 3. 5 . The imf is depicting a World Economy shaped by swings in currency and a drop in oil prices. It is a record the irs must hate. 54 companies in the s p 500 are partially exempt from corporate taxes. More than twice the numbers for years ago. The reason is in version. American Companies Move their tax address overseas and pay less in taxes. U. S. Corporate tax rate is 35 . The highest in the developed world. Very few Companies Pay that rate. The chairman of the Senate Foreign Relations Committee says Congress Must have its say on the new iran nuclear deal. Bob corker told bloomberg tv his committee may vote today on a bill giving congress 52 days to review and possibly reject an agreement. Bob corker says congressional oversight may help in the investigate in the negotiations. Bob corker most felt congress would eventually play a role. That strengthens the negotiators from the wests hands. This puts in place a process. The administration is free to complete its negotiations. Stephanie president obama has threatened to veto any bill giving congress a say in the agreements. An Airline Baggage handler decided to take a nap and got more than he counted on. He woke up midair. He dozed off in the cargo hold of an American Airlines airplane. It took off from seattle for l. A. He woke up and started hitting on the walls. Listen to the video captured by a passenger on the airplane. I would been panicked if i was on the airplane. [banging] stephanie i would have been having snakes on a plane nightmares for months. The captain declared an emergency, returned to seattle and the man was found. The man was taken to a hospital, and has been released. Did they fire him . Erik good question. Sleeping on the job. Stephanie if i was on the plane, we were grounded for an emergency, and it was that, i would not be happy. Erik lets go deeper into the imfs economy. Here is the chief economist, olivier blanchard. You and your colleagues have to balance the good with the bad looking into the future. What factors are working the most wrongly in the favor of Economic Growth . Most strongly in the favor of Economic Growth . Olivier the strong dollar is helping the World Economy. Hoping the advanced economies that needed the most. The eurozone and japan. At that somewhat expense of the u. S. The main two forces, those would be the two. Erik things that concern you. Oil prices, as you pointed out, are helping. Perhaps we have not seen the full impact. Do you worry about the impact on the economy when it reverses trend . Olivier if it reverses trend quickly. It will be an issue. Our best to, and the guess of the markets, is it will be a while. The reason the price of oil collapsed are reasons that suggest it will stay low for a while. It will go up, but not back to the 100. Erik the euro and the japanese are being held. But we are fighting economic battle with Foreign Exchange policy. It is not viewed so favorably by some . Olivier you have it wrong. I think the exchange rate, it will reflect the difference in policies. The u. S. Is close to being able to increase the rate. That is good. The euro needed a boost to decrease the rates. That is good. Japan definitely needed help getting it. The depreciation of the euro, the yen and the dollar is all for the best. Stephanie you said the eurozone needed a boost. What is the outlook for europe . Specifically, greece . Olivier europe is not greece. Greece is 2 of the euro zone. The outlook for europe has improved since last october by quite a bit. Due to some factors, the recovery fund. The price of oil has helped. It has not helped the yen much but it well. This leads to higher forecast for the eurozone this year than last year. The main risk we saw last year was the risk of a recession in the eurozone. That has not disappeared but it is smaller than it used to be. Erik how destabilizing would agree exit from the euros from the eurozone be . Olivier we very much hope it wont happen. We are working with the greeks to find an acceptable compromise. A program that makes sense to both sides. We hope it will happen. If there was an exodus, which could happen the answer is it will be very costly. For greece. For the rest of the eurozone, they are in better shape than in 2010 when the worry came out. Theyre more equipped. Most of the creditors are now official. It will still not be smooth sailing, but in general, they are in better shape and more ready to handle it. At the same time, if it happens, it would be crucial for the remaining members of the eurozone to try to go further in the direction of fiscal union based on signal. Greece is the exception. Stephanie greece is the exception, but how big is a problem how much of a thorn in yours side can greece be . In europes side can greece be . Olivier if greece defaults or exits, it is a problem that can be handled by other countries. One of the worries a few years back was that greece would do Something Like this then spain and portugal would follow. The spanish government, the portuguese government, the irish government, has shown a commitment to doing what is needed to stay in the euro. That contagion would be gone. Erik in your report, the imf raises concerns about the medium term. The outlook for Global Growth over the mediumterm is lower than what the world was used to historically. What would that mean geopolitically for fiscal and Monetary Policy, and the order of things . Olivier it means that we have to know it is coming and adjust to it. The point is that some newspapers have painted it pessimistically. A decrease in potential growth. This happens from decade to decade. There are factors that are easy to identify. Aging will be an issue. More fuzzy is the decrease in productivity and events to come. We have no reason to think it will turn around. We have to be prepared for these issues. You have to think about how you are going to fund retirement. It has implications for Structural Reforms. Potential growth is not a god given number. It is something you can affect not easily, but there are Structural Reforms that can help. Those are the effects we think about. Erik the imf would like to see developed economies undertake these posts crisis Structural Reforms and invest more aggressively and infrastructure. Few government seem prepared to do so. Take the United States as example as an example, where is the money going to come from . If the government still undertake reforms and invest in infrastructure, what will that mean . Olivier some reforms dont cost money, they caused political capital. The government has to decide whether or not to spend it. Some do cost money, money well spent. Any of the governments can now borrow and negative rates. It seems to have given the return on some of the investments and it is worth doing. We will continue preaching. Erik thank you. Olivier blanchard the chief economist of International Monetary fund. Stephanie well ask Jordan Spieth how his Life Exchange running the masters at age 21. Erik heres what is going on in the world. The market value of Chinas Tencent fell by 11 billion dollars. It is asias most popular Message Services operator. The ceo cut his sales. Shares of tencent closed more than 5 in hong kong today. Inflation has risen at the wholesale level. It was up. 2 in march after falling in february. The price of gasoline rose 7 in march. Southwest airlines is not giving you more like space, but it will give you more seats. Southwest is unveiling the whitest seat in any boeing 737 and america. 17. 8 inches across. More than. 5 inches of extra width. Stephanie are you excited . Golf may have found its next big star. On sunday, 21yearold Jordan Spieth won the masters with a score tying a record low at a gstaad. He tied with tiger woods. With us is the 2015 Masters Tournament winner Jordan Spieth. What a weekend. Congratulations. The last 48 hours. What has it been like . The craziest thing that happened to you . Jordan coming up p are two new coming up. And coming on your show. And enjoying wearing this jacket. What it means and the legacy it carries. Being introduced as a masters winner is crazy in itself. Stephanie you are 21 and have achieved your lifelong dream. What do you do . Jordan i havent figured that out. The ultimate goal is to become number one in the world. Rory mcilroy is number one right now. This is a giant step toward this. The goal is always on my mind. It is a longterm goal. Im glad to be off to a good start. Stephanie what was on your mind this weekend . Specifically on sunday. The back nine. You are not playing to not lose. You said i want to play to win. You didnt need to do that. In new york we remember when Phil Mickelson played at the u. S. Open and took a risk. Why would you do that . Jordan last year, i had the lead on sunday at the masters. I played not to lose. I played more conservatively which is not who i am. It bit me. This year i learned from that and said i need to stick to who i am. If i dont pull off the shot it is bad execution. I dont want to change my decisionmaking. I wanted to continue what was successful, and that is what we did. Stephanie who are you . Describe yourself as a golfer in one word. Jordan aggressive. Young and fearless is what i was like what i would like to be said. Taking chances, not being afraid of the next shot. That is how you learn who you are. Stephanie is that why you have under armour . That is how we hear it described. Jordan one reason. They are fearless. Aggressive. I believe they are the best in the game. They certainly are for me. Stephanie please see pictures of you wearing under armour not just on the course, but in your free time. Are you living the brand . How important is it . Jordan the chance they took when i left of school and came out with no status on tour. To resign with them for them to put their trust in me for 10 years starting this year. They expect greatness from everyone involved in the company, including myself. Im happy to be a part of it. As much or as little as they want me to be. To be very involved with the process of determining what i wear. How to be comfortable. And to perform my best without worrying about anything else. Stephanie they dont make equipment. Was it a factor when roy had to change to nike and change equipment it hurt his game. Did that matter . Jordan i didnt have to change anything. I didnt have i didnt want to change anything on the course. Making the transition would be hard enough. Be able to Wear Clothing i were andy way i wore anyway, and play with the same clubs, and made the transition easier. Stephanie so many people want their children to be premier athletes. When your child how much time are you putting in . Jordan i played all sports. My parents encouraged us, if we wanted to be really good at something, to set goals. My dad encourage me to write on a goal to achieve. That was important, but i was not pushed to play golf. I think that is the best route. To find what you love. Find a group of friends that will push each other. If that is what you want to do for living, it will take work. I love the fact that we control our own destiny. Our preparation and practice determines how we perform on the court. Youre playing against your mind and a golf course. You either have the determination or you dont to begin with. Having success brings more and more confidence out to go on in the future. Stephanie is that what makes you so good at pingpong . Jordan that is my game. Stephanie pingpong is his game. We will take a quick break. When we return we will talk ball. The boss will get a few tips. Jordan will be joined by our favorite inhouse golfer Mike Bloomberg. Stay with us. Stephanie Jordan Spieth is the most popular man in the world right now. He won the masters this weekend and is most known for his short game. We are joined by our boss, michael bloomberg, a golf enthusiast. We thought we would put you to work. You can do a little work in this week. Jordan i would love to. Mike i have a better chance in the next decade of shooting my age than he does. Stephanie how would you advise him . Jordan i would like to see something first. You have to get it there. Mike i know that. Stephanie here you are. This weekend, when you are in this position, help us understand what goes through your mind at this moment. Jordan well, i left myself with tough putts. I tried to have an imagination. Really, it is all about speed, which we are struggling with here. We got the line down. Mike we got the line down, all right. Stephanie are you saying that Mike Bloomberg is having a tough time with speed . Jordan he is not used to the green. It has been perfect. He doesnt need help. They did not speed up the green for you this morning. It is not on you. How good is that . Stephanie when youre in this moment, like mike, how do you handle the pressure and not choke . You can say you breeze, you have medication, how do you handle it . You breathe, you have medication, how do you handle it . Jordan dont think about it being for birdie, for par, dont look at the scoreboard. You have to recognize, that the read, think about the speed, and pretend like you are hitting another putt on the practice green. When you hit a enough under pressure, you see some go in theres great visualization. You can take some confidence just from watching it go when. Go in. I do this from four feet and in. I look at a specific point at the front edge of the hole. It is not the worst idea. You cant miss. It comes from within. And a lot of it is based on seeing something prior to doing it. Seeing cuts go in seeing putts go in. Mental strength is something you develop over time with success. Stephanie you have been an analyst since the start. He is 21 years old. He needs to stay grounded. Tiger woods, whom he is compared with, had issues overstaying grounded. How would you advise him . Mike he should enjoy life. You have to understand, you are only as good as your last game and last championship and there are other players out there. People want someone who is sympathetic, interested in helping kids. I watched bubba watson and he is about to hit. Some kid said that i have your signature . Anyone in the audience fell in love with him right there. He did not snapped at the kid. He was representing golf himself, his sponsors. He handles himself like a gentleman. Stephanie what role does your family play in your golf . Jordan a lot. They made sacrifices when i was young. I would wake them up at 7 00 in the morning saying take me to the course. My friends are getting out there before me. They continue offering not support and doing what i need to have this and doing what i need to have the success. Stephanie is that who you play for . Your family . Jordan i play for my family. I play for a lot of people, but most importantly my family. Stephanie im lucky to be here with two extraordinary gentlemen. Mike jewish or favorite older golfer . Who would you look to and say they had the perfect swing . Jordan ben hogan. I like the texas legends as well of nelson and hogan into they were off the course. That is who i strive to be. Mike if i could get my elbow in like hogan i could be with you in the next one. Stephanie michael, jordan, congratulations. He has the green outfit. If you want get the outfit he wore on sunday, it is sold out everywhere. Jordan spieth can do no wrong. Im joined by our founder of michael bloomberg. We will be back. Youre watching a special edition of Market Makers. Live from new york, this is Market Makers with Erik Schatzker and stephanie ruhle. Erik weve got the guy who can plan your next event. Youll probably have to wait in line. Going headtohead with David Einhorn claims were rejected for shorting his company stock. Nokia is out to make the Biggest Network of wireless equipment. Im Erik Schatzker. We will begin this hour with the bulletin. Talks are underway that could create the biggest wireless company. Nokia is in talks to acquire a French Company. Jpmorgan posted first creditor quarter profits. The bank believes the improvement is here to stay. Wells fargo said low Interest Rates pushed lending rates below 3 since the First Time Since the 90s. They are the countrys biggest Home Mortgage lender. The imf is helping the euro and japan. The imf kept it regressed production projections. The chairman of the Foreign Relations Committee Says Congress Must have say on an Iranian Nuclear deal. Bob corker said his committee may vote on until the would give congress 52 days to review and reject. Oversight helps the negotiation. Most of the negotiators at the table thought congress was going to play a role. We know that strengthens the administrations hand. It strengthens the negotiators from the west. This puts in place a process. The administration is free to complete its negotiations. Erik the president has threatened to threat feet of the deal. Jcpenney was preemie premature with its projections. They had to share the data with investors. The data showed sales were up 6 . General electric is developing a science documentary series that will be shown in the National Geographic channel. It will feature employees and technology subjects. Ron howard brett ratner have signed on. Stephanie David I Norton as been einhorn has been beating the drum. Now that drumbeat is getting louder. He recently shaved showed a video explaining. What i said last year was had you get to your growth . I said i dont know. I got it out of my ass. What was important was the stock did not crash. Its true. Directly from my ass. Stephanie he is here to explain. He is in chicago. Lets start. I want to get technical. You got the 30 number out of your ass . What you talking about . Guest im taking to calling it my database. I study it. I do analysis and i come of the number of think we can do. Weve always been shooting for 30. We have very small market shares. Weve got lots of room to grow. We are a very elaborate service. We do a lot of work for people and that requires hiring equipment and infrastructure. We are taking all the millions of copies and billing departments and medical records departments city and hospitals and building one cloudbased version. Its a big investment every time we take on a major new account. Youre probably going to ask me about trinity in a minute. They are the fourth largest medical group in the country. Thats a lot of investment for us. It gets hard. 30 is still good growth. Stephanie it is. I need you to help me break down the numbers. Where does it come from . How many doctors are you going to be acquiring . I am having a hard time with the numbers. Guest i think trinity has around 5000 doctors. They have a fabulous new ceo. They are moving from a Hospital Company to being a people centered health care company. They will probably grow from there. None of the 5000 doctors will use this for long if we dont do a great job as we begin our implementation. As with all of our clients that we serve, we grow at the leisure of the client. We expect to see lots and lots of trinity doctors on board the way we did with ascension and Committee Health systems that we serve. Erik how many Trinity Health doctors are in this agreement . Is it all of them . Or is it a few of the ministries . Is there the potential for step up over time . Guest we are going at this in a way that will allow us to serve them all. There will be specific issues that may delay or stop an of limitation here or there. That will be at their discretion or it the thing about Athena Health we have 97 revenue retention its always at the customers discretion. There is no binding contract that makes the customer do something. Its being good that makes the customer do something which i prefer. This is a big deal. Its not a pilot or a wandering. This is a wonderful wheelhouse deal for Athena Health. Erik im not suggesting anything different. Im trying to help you understand what it means for your company. They care. Since we are having the conversation, lets look into the future. 12 months from now, how many of those 5000 Trinity Health doctors would you expect using Athena Services . Guest we are equipped right now to handle all of them well within that timeframe. Erik i know you can. How many will . Guest im not the boss of trinity. I am expecting them to go all the way in. We are planning to meet with them as if we are going to roll it. We are not announcing specifics like that. Peel people are going to wire us up against them. It turns into a big sale. Stephanie take me back to that 30 just for a moment. You said you did not hit it last year. David einhorn said your mutt numbers are more like 20 . Guest we shoot every year to grow by 30 . Over the course of the year, we kind of get in there. Its a very ambitious goal. Very few companies try to grow organically 30 . We think weve got it in us because of the wonderfulness of our product. Stephanie if i was your employee or your mom or your sister, if i was investor i would care about numbers and if youre doing it. Guest we shoot for 30 . We dont do the kabuki theater of having a secret number and then put guidance around that. That so tiring. Stephanie i agree with you. Guest maybe they will hit the goal but they know that i like setting goals that are possible to miss and are ambitious. My employees know that missing is ok because thats what makes the culture resilient and powerful. Stephanie do you like being prepared to john ledger . Guest is he a good guy . If so i think of him all the time. Erik dont you think theres some sense in a setting expectations for investors that you can meet . I could go to the gym and say that im going to try to bench press 400 every day. Stephanie he does. Erik that doesnt mean im not going to try. I might be honest with them about what i think i can do and whether im actually getting there. Guest the way i look at it, if you did 150, next time try to get to 160. Keep pushing yourself up. Thats what we do. We say 30 is a 30 bigger challenge. Every year that gets harder and harder. We have missed several years. How many rows of fields are unplowed . There is money of room to get that 30 again. Erik if you are shooting for 30 or more as you just acknowledged, what is a reasonable expectation . What should people expect athena to be able to do . Guest what are they saying past performance is not an indicator of future performance . Look at our past performance. We are always between 20 and 30 . Some years 35 . I think thats right where we will be. Stephanie your competitor is now partnering with apple. It you try to win that deal . Guest we are partnering with apple as well. This is a huge health care i. T. Tradeshow. It just rolled out our first apple watch demo for the athena application. We are getting secure text messaging to every physician in the United States. That text messaging app will be available on the apple watch when it comes out. We are thrilled that they are in there as well. They were pointing raised in the Enterprise Software world. Every Epic Customer has a standalone database. They dont necessarily talk to each other without some interface and agreement, which is different from cloudbased Companies Like Athena Health. They have great developers. I was on stage last night with Judy Faulkner added industry spoof awards night. I think her Business Model will eventually go the way of the dodo bird, but not for lack of her building an Awesome Company over the last 20 years. Stephanie its great having you. Rest of luck. You are quite the character. Erik coming up thanks kickoff earning system season with a bang. Its a bit of a mixed report. We will tell you what to expect from wall streets other players when we come back. Stephanie its time to bring you uptodate on the top stories of the morning. Retail sales fell short. It was the first gain in four months and the biggest advance in over a year. Americans are being cautious with their wallets, even with lower gas prices. There may be a bigger boost in wage growth before they start loosening the pursestrings. The biggest risk in the credit market, its Student Loans. The fatah Pershing Square capital told a conference if you think the trillion dollars of Student Loans out there, there is no way the are was are going to pay all of it back. 90 of outstanding balances that totals 100 billion that are in default. President obama will become the fourth president to visit all 50 states while in office. South dakota is the final state. He will deliver the commencement address this year at a Technical Institute in watertown, south dakota. Coming up, deal or no deal . Talks are underway and what could be a takeover in the Wireless Network equipment industry. You know the parties you read about all the time in gossip columns and Society Pages . Weve got the man who creates and designs and plans them all. Erik now its time for some conversation about wall street. Jpmorgan anna and wells fargo beat analyst estimates. Jpmorgan rose 12 . There was a boost from trading. Thats the first time thats happened since 2010. Wells fargo got a boost as Interest Rates spurred more home by the buying. What can we expect . Lets ask david trone. Also here is allison williams. Specifically as it concerns trading, you think jpmorgans numbers and a glimmer of hope that we will see the same thing from city and Morgan Stanley . Guest we started out for a strong. I think march was a little bit weaker. We did have bullish expectations. We raised our numbers. We could not be our trading trading forecast. Stephanie is it because volatility is back . We are seeing so many ipos. That spurs business. Guest you had them both. Investment banking was very strong as well. We have primary activity, make no mistake about it, the fixed income trading was helped by the fed changing language. It has people rethinking their positions. The specter of the fed rating rates raising rates has been out there forever. They have expected it for so long and it hasnt happened. Its like the villagers with the boy who cried wolf. They are not paying attention anymore. It was a sign of what could have. Happen. I think investors are going to be changing positions and we are going to have a tremendous pickup in activity. Erik allison, there is volatility with us for several months. Some of the factors that help banks in the First Quarter, the shocking decision i the Swiss National bank to revalue the franc. There is also going to be quantitative easing at the ecb. Guest as long as we have the divergence in Monetary Policy we will still have a big benefit. As long as you have that what was interesting with jpmorgan we had confirmation of some of the things that Bloomberg News reported last quarter. Bloomberg said that they had a 300 million gained from the swiss franc. As you may know, citigroup was notably more negative than other companies. They are getting some confirmation ahead of that. Erik david, one of the things that caught peoples attention in the wells fargo earnings, that interest margins slipped below 3 for the First Time Since the 90s. They are the best at preserving as much margin. What does that suggest . Citigroup is a big commercial bank. There is no Bigger Consumer lender then bank of america. Guest jpmorgan is under pressure as well. Thats going to continue. If the rates stay at zero, you will see these little cuts. What the banks want to have is the fed getting two basis points. The racing process might create some shortterm pressure. The banks really want to get back to a more normal spread type of environment. It doesnt mean a lot. Youre not going to generate much on that. We get a stronger economy to drive loan demand as well. Erik we certainly do. A 4 fed funds rate seems like a long way off now. We also enjoyed allison williams. Thank you very much. Stephanie we could talk ranks all day, all year. Stay with us. Youre watching you are watching bloomberg television. Erik this is where he leave you. President obama will be making the decision about the keystone pipeline. We know that already. Who will do with the fallout . Its also going to be the minister responsible for Natural Resources in canada. I am going to talk with him. You can see the interview at 3 30 p. M. On street smart your cup. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie ruhle. Stephanie you are stuck with me. I am on my own. Eric has left us. Markets are closing overseas for the day. We want to get to the breaking news desk. Scarlet fu is looking at all the action out of europe. I know you have hardcore athlete sons, hockey players. As a mom, you had to be looking at that guy and saying you want for your boys. Guest that was impressive. Erik stephanie what was i doing when i was 21 years old . Guest their worries at the greek government is going to prepare for that default. The Prime Minister denies that. The retreat is being led by noki a they are going to buy. That wasnt enough to lift the entire bank sector. That has been falling 1. 25 . Here in the u. S. , i want to focus on the online real estate company. It resumed trading and fell 1220 . What were the headlines . They called a transition year. Investors never like that. It is trending a couple of quarters behind where they would like be. Casinos are falling on the slowdown. Wells fargo says latest checked say gaming fell as much as 42 compared with its prior. It leaves the government of macau trying to get more International Tourists while limiting congestion caused by mainly in mainland chinese visitors. There could be a visitation cap according to wells fargo. Stephanie thank you for giving us the latest. Its a deal that could create the biggest maker of Wireless Network equipment. Nokia is in advanced discussions to buy a French Company. A deal could value 13 billion. There is an agreement that bears no certainty that it could be reached. I want to bring in manual. I am looking at shares. They are down. Guest thats a good question. Its a big deal for no key a gnocchi a nokia. They are competing with ericsson. Its very good deal for them. Investors like. That would mean a tremendous combination for the company. Stephanie why now . Guest the timing we have is very historic and recognized companies. They have struggled in the past few years. Nokia and alcatel, the timing is perfect. At the same time, we have two companies that are struggling. Now they come together and come to the conclusion that its the perfect time for them to combine. Stephanie this is the first time they have been speaking. Why are they suddenly at the table today . Guest exactly. The talks have been on an off for quite a while. One of the biggest hurdles was the government, the french government. They were concerned about what they cause strategic assets. They were concerned about potential job losses. Now, the government is more open to these combinations to ensure the future of the company being in good hands. Stephanie what could the combined companies do better . Guest they will have more negotiation power with telecom providers. They will be able to compete in a much better position with other Companies Including ericsson. At the same time, they will gain more access to very good markets like the u. S. Or china where the potential for growth is in or miss. Stephanie its getting late over there. We will let you go home. When we return, Congress Wants to say have its say on iran. Stephanie erik is gone for the next 30 minutes. Peter cook is here. We are talking about republicans and democrats on the Senate Foreign Relations Committee. They are going to vote and bill that will give them a say over the iran nuclear deal. The white house says this could jeopardize the talks. This is very special. Peter was in ec an hour and a half ago. He did not want me to be on the set alone. He hopped on air force one and here he is. Guest bad news for the president. Bob corker is one of the people who is skeptical. He is chairman of the Foreign Relations committee. They are going to hold a vote with some democrats in some or for a measure that would give the senate a say over this deal. The president said if you take your with this now you could blow the whole thing up. I asked bob corker if he is willing to stand in the way. Most of the negotiators thought congress would play a role. We know that strengthens the administrations hand. It strengthens the negotiator from the west hands. It puts in place a process. The administration can complete the discussions. Guest hes got some democrats with him. How many . The key number is 67 votes. The president could feed so this legislation. The only way to get above that is a vetoproof majority. He says he is not ready to catch cap his chickens before they hatch. This is an important moment for this deal. The iranians are watching every single episode here. If congress were to step in does it boost the president s leverage with the iranians . Does it boost the hardliners in iran . I think were going to hear opposition to this unless it gets water down by democrats and theres a chance they could add some language to it to make it more palatable to the white house. Bob corker seems set. He wants congress to have a tougher down say on this measure without derailing the talks entirely. He thinks this balances and achieves that fine line. The white house is probably going to take a different tack. Stephanie its where that we see democrats and republicans working together. Guest in opposition to the president. Thats a civil Silver Lining for the white house. There is some gamesmanship going on. There is some politics in play to send a message to the iranians that the president needs to satisfy his critics in congress. At the end of the day, there is a possibility that congress could stand in the way of a deal. That the leaders of france, china, germany likes. Are they prepared to do that . Stephanie i just and watching house of cards here cap. Its a special show. Guest its dark red. Stephanie i really love robin wright. Her style is fantastic. Now that i am watching it, i am a washington expert. When we return, this man plans the parties you read about the next day. You dream of getting invited. Thats why he get calls from residents, rock stars, and socialites. Stay with us. Stephanie welcome back. The commercial break is the best time on the show. Its time to bring you up to speed on the news this morning. Its a deal that could create the biggest maker of Wireless Network equipment. Nokia is in advanced discussion to buy pocket tell alcatel. It could be a 14 billion deal. There is no certainty that an agreement could be reached. Gnocchi a has been following falling all day. The First Quarter revenue rose for the First Time Since 2010. Wells fargo is down after reporting a drop in net income. A piece of history was auctioned right here in new york city. A notebook used i alan turing went for 1 million. It is the only extensive manuscript known to exist. His life was depicted in the movie the imitation game. This man has planned events for american president s and even rockstar royalty like beyonce. He put his talent to work by transforming the jpmorgan building for a benefit. Welcome. I want to start. Lets look at this. Were not talking about a party planner. Look at what this event space looked like before they took hold. Look at this. You can see what he did to the place. Absolutely extraordinary. We will find out how he has done it. Welcome. Lets look at that space. When a client comes in, are they saying i want this i want that . The you look at that empty space , how to know what youre going . Guest thats a great space because its a blank canvas. Theres nothing there. We can create a world. Its almost like a soundstage. We get to build a set. Stephanie who wants to do that . Is this wealthy people . Guest it depends. I think events are used as platforms for communication. When an individual throws a party, if the celebrate. When a company does it they want to take some who feels a certain way about their brand or Product Service and give them an experience. They feel a different way after the experience. Last night for edible schoolyard, that was jpmorgans office. When jp morgan the man. He destroyed the inside. This is the rumor. He destroyed every fixture and every finish so no one else could ever recreate a bank. Stephanie when they came to you , what did they want to do . Guest we worked on that as volunteers. The great part of being in the business is we can comment on certain events and really help them punch above their weight. This is a big charity event. Its the fund gardens and kitchens in schools in new york city where kids to learn about healthy eating. They learned how to prepare healthy meals. Over the course of a year, they grow food that they will use in their class. A bunch of chefs come together. 20 amazing chefs, each made a dinner for a different table. We can been sitting at tables next to each other and we would that completely different meals. April bloomfield might have been cooking yours. It was a real experience for people who love food. One of the things we had to deal with in the space was the fact that we needed to create 20 kitchens. Chefs dont play well together in the kitchen. We had 20 individual kitchens that surrounded the space. Thats part of the reason why we needed such a big space. Stephanie how has social media changed your business. If i cant afford to go to a blacktie dinner, how has it changed . Guest thats part of the value that events can bring to a charity or to accompany now. They are able to reach so many more people then the individual bodies who were in the room. If each of those 200 people has followers on instagram or facebook, youve reached 200,000 people if they post pictures of the event. They are becoming more effective. Social media is a force multiplier. Stephanie is social media diluting brands . Now we have 22yearold bloggers saying i think this is hot or cool. Are they changing the landscape . Guest of course. They are a consumer. Their voice should be heard. I think the ones who speak the loudest probably help brands much more than they hurt them. They help brands understand what the market has to say. Stephanie what inspires you . In one word. Guest hospitality. The notion of hospitality. The gift you can give somebody who comes into your charge, your care for a. Of time. Stephanie i love that. Thank you so much for joining us. Come back soon. Tomorrow, we have a lot more to cover. Today was so special. Jordan spieth. Tomorrow, stan druckenmiller. Dont miss it. Bloomberg television is on the markets. There is little change. Do we have the board up . The u. S. Dollar falls the most in a week and a half while treasuries increased. The yield on the 10 year comes down to 1. 86 . We thought we would get some reaction with the start of the banks reporting earnings. Why are we not getting much direction . Guest we think there are going to be catalysts that bring some volatility to the market. The first is going to be when Balance Sheets start contracting. That started in january. There is a search for yield. That hasnt really come in to play. The other thing would be a search for the strong dollar. That really hasnt impacted. We saw Johnson Johnson report. Guest thats what you didnt see a drastic move. They were able to forecast. When tech starts to report next week, thats what will have an impact. Microsoft was up 10 off the stronger dollar. Does this point to a lackluster sense that the economy. The First Quarter was week because of the bad weather and the disruption from oil prices. The retail number did not answer any questions. Guest i think thats one factor that is contributed to the earnings of the s p 500. If you look at a stock like oreilly automotive, its up tremendously since october. Its rice to perfection. Priced to perfection. They are reporting earnings on the 22nd. Its very inexpensive. Volatility is below 20 and you can put on a cheap insurance plan. Its exceeded all expectations in price target. Im going to take a look at the price earnings a ratio. Guest what the cfo is going to outgrow that. Its priced for perfection. We will see how guidance will play out. There has never been a better time to be a consumer. You are looking for that to really hurt tech results. Are you talking about names like intel . Guest thats going to be a good one to impact your it i think amazon is going to be a strong one. Last quarter, it really impacted them. Thats where theyre looking for growth. Theyre looking for international whether its amazon or netflix. Intel will be reporting results. Casinos are in focus because of some disappointing leads on april gaming levels. Guest we see a lot of people buying. They are doing the same thing as well. Thank you so much for joining us this afternoon. Money clip is up next. Pimm welcome to money clip. I am pimm fox. This is the rundown. Jpmorgans scores a run down. Jamie dimon warns this could lead to a new crisis. Marco rubio joins the president ial race. There will be a mad for florida cash. Thousands of refugees die trying to cross the mediterranean. We will introduce you to save them